SCHEDULE 22Asset-based penalty for offshore inaccuracies and failures
PART 3Identification and valuation of assets
Introduction
10
(1)
This Part makes provision about the identification and valuation of the asset for the purposes of calculating the amount of the asset-based penalty.
(2)
An asset-based penalty may relate to more than one asset.
(3)
The identification and valuation of the asset is to be determined—
(a)
under paragraph 11 where the principal tax at stake is capital gains tax,
(b)
under paragraph 12 where the principal tax at stake is inheritance tax, and
(c)
under paragraph 13 where the principal tax at stake is asset-based income tax.
See also paragraph 14 (jointly held assets).
(4)
The principal tax at stake—
(a)
in a case where the standard offshore tax penalty (or penalties) relates to only one type of tax, is the tax to which that standard offshore tax penalty (or penalties) relates;
(b)
in a case where the standard offshore tax penalty (or penalties) relate to more than one type of tax, is the tax which gives rise to the highest offshore PLR value.
(5)
The offshore PLR value, in relation to a type of tax, is the potential lost revenue or liability to tax by reference to which the part of the penalty relating to that type of tax was assessed.
(6)
The rules in paragraph 5(2) to (7) apply for the purposes of calculating the offshore PLR value, in relation to a type of tax, as they apply for the purposes of calculating the offshore PLR.